Homeownership has long been seen as the benchmark for achieving the American Dream, but a growing number of renters are choosing to forgo buying a home, even if they can afford one. Bernadette Joy, a money coach and CNET Money Expert Review Board member, is one of those renters. She and her husband recently decided to sell all their properties and are happily renting by choice. As many households are priced out of the housing market due to high mortgage rates and steep home prices, lifelong renting is becoming more common, reflecting a shift towards the freedom of not being property owners.
Joy emphasizes the importance of not rushing into homeownership, especially in a competitive seller’s market with high home prices and low inventory. Many people make hasty decisions based on external pressures rather than taking the time to find the right home for their needs. Joy advises potential buyers to take their time and find a place that suits their lifestyle, rather than succumbing to the pressure to buy because of market conditions. She believes that it is better to rent until the right home comes along, rather than settling for a property that may not be the best fit.
The pressure to become a homeowner can lead people to make risky financial decisions in order to meet societal expectations. Joy points out that the narrative that renters have a lower social status can push people into buying a home simply to impress others, rather than because it meets their actual needs. She shares her own experience of initially feeling societal pressure to own a home, but now embracing renting as a financially secure choice. Joy encourages people to be honest with themselves about what they can afford, considering not just the upfront costs of homeownership, but also ongoing expenses like maintenance and insurance.
While Joy can afford the expensive housing market in her area, she has chosen to rent because she has not found the right place to buy. She emphasizes the importance of committing to a 20% down payment when buying a home, even though it may require a significant amount of cash upfront. Joy cautions against buying a home with a low or zero down payment option, as it may indicate that a person is living paycheck to paycheck. She also highlights the additional costs of homeownership that are often overlooked, such as insurance and maintenance, which can be a burden for those with other financial responsibilities.
Joy and her husband do not have a specific timeline for buying a home, but they are content with their decision to rent for now. She advises clients to find a real estate agent who is not pressuring them to buy, and to practice living on a budget that includes mortgage payments before making the decision to buy. By having a realistic understanding of their financial situation and maintaining a contingency fund, potential buyers can make more informed decisions. Ultimately, Joy believes that there is no shame in renting for as long as necessary to fit one’s lifestyle and financial goals.
In a society where homeownership has traditionally been valued, more renters are choosing financial freedom over owning property. This shift reflects a growing trend of making conscientious decisions about finances, retirement savings, and personal experiences. Joy’s story serves as an example of how renting can be a viable and financially sound choice, and she encourages others to consider what aligns best with their lifestyle and goals. Ultimately, the decision to rent or buy a home should be based on individual circumstances and priorities, rather than societal pressures.
